Agree, the NASDAQ index will not grow forever. In the end the ECNs will steal the show as their growth already outpaces the market's. The ECNs will eat into the organic (day trading) growth of the NASDAQ (which will continue to rise from its captive IPO and M&A businesses no to mention its expansion plans abroad) in a similar cannibalization case as we already witnessed between the NASDAQ and the NYSE.
As for our ongoing discussion about NASDAQ 4400, we are now 4% away from the target. Just a matter of days (CSCO, CPQ to report and more importantly communicate their growth expectations for 1H2000, e.g. W2K, SANs, optics,E-com) before we touch that level.
With respect to RFMD, if we cross $94, the next threshold will sit at circa $125 (before split). As expected, the pool of analysts was somehow confused with the earnings' picture, hence the contradictory calls ($98 vs $120). It will take a little time before the analysts agree (it took a little more than a couple of months for Citrix). At this point, I believe most of them will wait for the Fed to finalize its rate decision before committing to a new target price. It means that in the meantime, the stock direction of RFMD will be left to individual investors.
Enjoy your trading. |
